West Ham manager Sam Allardyce has dismissed speculation that midfielder Mohamed Diame could be set for a move to Arsenal in January.

Diame, who only joined the Hammers in the summer, has a clause in his contract allowing him to leave for £3.5 million during the current transfer window.

That price, coupled with Diame's impressive form during the first half of the season, had led to reports that Arsenal could make a move for the player - but Allardyce has not heard anything from counterpart Arsene Wenger.

"You are always worried about losing players but we have not had a bid from Arsenal for Mo Diame," Allardyce said. "I can't see where he would fit into their side."

West Ham are hoping to add to their squad rather than subtract from it in January, although an initial move for Blackburn's Martin Olsson has not progressed in recent days.

Allardyce added: "We have not made any further bids for Martin Olsson."